Large budget deficits in both state and local governments across the country are on the rise. When the economy is good and tax revenues increase so does government spending. This all comes to a stop when the economy is bad and tax revenues plummet. This forces state and local governments to either raise taxes or make serious cuts in services.
How will cuts impact teachers, police, fire and other public sector employees? For some it will probably mean a wage freeze and a halt in overtime hours. The fact is many states and local governments are going to have to lay people off. Politicians will begin to ask that public sector employees start contributing more to medical and pension benefit packages to avoid layoffs.
Governor Chris Christie has already demanded pay freezes and is pushing public employees to contribute more to their pension and health benefit packages. Public employees in New Jersey contribute 1.5% of their pay to benefits and pension. Most teachers in that state contribute zero to their health plans. That is a great deal for hard working public employees, but it looks like some changes must occur.
Other states will have to raise taxes or will have to follow Governor Christie's lead and start freezing public sector pay and demanding more benefits and pension contributions. The other choice is to raise taxes on everyone.
The problem is that most private sector employees don't have benefits and retirement plans that compare to those enjoyed by public employees. It will be a bitter pill to swallow for private employees to suffer a tax increase to support public sector benefits.
New Jersey is not alone. Compared to California, Jersey's budget deficit is small. The plain truth is that there is no money left and cuts have to and will be made. We will all have to do with less government services. Those in government service may find that their job is not as secure as it once was.
The truth is that people in both the private and public sector would be smart to look for additional ways to earn income. This is still the United States of America, the greatest place to live on earth.
There has been an up surge of people starting home business to earn additional income. People are using Ebay to set up small on-line stores. Many have joined one of the hundreds of different Network Marketing Companies from Amway to the Numis Network selling everything from soap to collectible coins. There are literally thousands of people making extra money using network marketing. There are opportunities out there for those who look.
How will cuts impact teachers, police, fire and other public sector employees? For some it will probably mean a wage freeze and a halt in overtime hours. The fact is many states and local governments are going to have to lay people off. Politicians will begin to ask that public sector employees start contributing more to medical and pension benefit packages to avoid layoffs.
Governor Chris Christie has already demanded pay freezes and is pushing public employees to contribute more to their pension and health benefit packages. Public employees in New Jersey contribute 1.5% of their pay to benefits and pension. Most teachers in that state contribute zero to their health plans. That is a great deal for hard working public employees, but it looks like some changes must occur.
Other states will have to raise taxes or will have to follow Governor Christie's lead and start freezing public sector pay and demanding more benefits and pension contributions. The other choice is to raise taxes on everyone.
The problem is that most private sector employees don't have benefits and retirement plans that compare to those enjoyed by public employees. It will be a bitter pill to swallow for private employees to suffer a tax increase to support public sector benefits.
New Jersey is not alone. Compared to California, Jersey's budget deficit is small. The plain truth is that there is no money left and cuts have to and will be made. We will all have to do with less government services. Those in government service may find that their job is not as secure as it once was.
The truth is that people in both the private and public sector would be smart to look for additional ways to earn income. This is still the United States of America, the greatest place to live on earth.
There has been an up surge of people starting home business to earn additional income. People are using Ebay to set up small on-line stores. Many have joined one of the hundreds of different Network Marketing Companies from Amway to the Numis Network selling everything from soap to collectible coins. There are literally thousands of people making extra money using network marketing. There are opportunities out there for those who look.
About the Author:
Bruce Holmes is a small businessadvisor and profitable marketer who searches for alternative strategies for wealth creation and preservation. He has advised hundreds of individuals on how to develop additional sources of income using any network marketing company. He has a developed a free training system to help new and struggling network marketers achieve success.
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